Social media giant Meta has agreed to a monumental $18 billion settlement with 48 US states, the District of Columbia, and three US territories, resolving claims that its platforms, Facebook and Instagram, have harmed children. The agreement, approved by a California judge, represents Meta's largest payment to date concerning child safety litigation.

This settlement aims to address long-standing concerns about the impact of Meta's social media services on young users. The states had demanded significant changes in platform conduct, including the implementation of default daily time limits and night-time usage blocks, which Meta has now agreed to.

California Attorney General Rob Bonta hailed the agreement as "a major moment to clean up an industry that has been hurting our kids." Meta, while denying any wrongdoing as part of the settlement, confirmed that the substantial payment will be distributed in annual installments over a 10-year period.

Judge Yvonne Gonzalez Rogers, in approving the settlement, described it as "fair, reasonable, comprehensive, and in good faith," noting its dual focus on monetary relief and behavioral changes designed to "meaningfully address the negative impacts of the social media platforms."

The initial lawsuit was filed in 2023 by 29 states, accusing Meta of numerous violations of federal and state child privacy laws. While the settlement encompasses nearly all US states, New Mexico was notably not part of the agreement. In a separate ruling last month, a federal judge in New Mexico declared Meta a public nuisance, akin to air pollution, and ordered the company to pay nearly $1 billion in fines.

The settlement comes as a jury trial was underway in an Oakland, California, federal court. State lawyers argued that Meta was aware of millions of young users, aged 11 and 12, on its platforms but took insufficient action to protect them. The prosecution presented internal Meta documents, including research, emails, and chat logs, some reaching up to CEO Mark Zuckerberg, to support their claims.

One internal Instagram study highlighted in court noted that "teens have an addict's narrative about use," while state lawyers contended that Meta actively targeted young users. Meta consistently maintained throughout the proceedings that it had invested heavily in teen safety, conducting extensive research and developing new protective features.

Adam Mosseri, head of Instagram, testified in court that "we're always working on teen safety." The case was settled and the court adjourned before he could be recalled to testify before a jury. Earlier in the trial, a former Meta researcher detailed internal communications regarding the company's safety initiatives.